AUSTIN, Texas—Sameer Gandhi, a director at CrowdStrike Holdings, Inc. (NASDAQ:CRWD), recently sold a significant portion of his holdings in the cybersecurity company. The transaction comes as the cybersecurity giant, valued at nearly $90 billion, has seen its shares surge over 42% year-to-date, with InvestingPro analysis indicating the stock is currently trading above its Fair Value. According to a filing with the Securities and Exchange Commission, Gandhi sold a total of 6,050 shares of Class A common stock on December 3, 2024. The shares were sold at prices ranging from $345.25 to $351.50 per share, amounting to a total transaction value of approximately $2.18 million. The company maintains a strong financial health score according to InvestingPro analysis, with robust revenue growth of 31% in the last twelve months.
The shares sold are held by Potomac Investments L.P. - Fund 1, with Gandhi disclaiming beneficial ownership except to the extent of his pecuniary interest. Following these transactions, Gandhi retains ownership of 809,266 shares through Potomac Investments L.P. - Fund 1. Additionally, Gandhi holds shares in various trusts and funds, including The Potomac Trust and Accel Leaders Fund L.P., among others.
These transactions were executed under a pre-arranged 10b5-1 trading plan adopted on June 26, 2024, which allows insiders to set up a predetermined plan for trading stocks to avoid any potential insider trading accusations.
In other recent news, cybersecurity firm CrowdStrike Holdings has been the focus of several analyst firms following strong third-quarter results and a robust forecast for the fourth quarter. KeyBanc maintained its Overweight rating on CrowdStrike, reiterating a price target of $395, while TD Cowen reaffirmed a Buy rating with a $380 target. Needham raised its price target to $420 from $360, and Citi increased the price target to $400 from $300.
CrowdStrike's third-quarter results surpassed expectations, with a 27% growth in Annual Recurring Revenue (ARR) and a 29% increase in revenue. The company's revenue exceeded $1 billion, marking a 29% increase from the previous year, and the ARR reached $4.02 billion, a 27% growth from the previous year.
Despite a one-time removal of $26 million in ARR due to a non-recurring transaction with a distributor and a shift in the expected timing of net new ARR acceleration to the second half of fiscal year 2026, CrowdStrike's net retention rate remained strong at 115%. CrowdStrike reported over $600 million in Falcon Flex (NASDAQ:FLEX) bookings during the quarter and saw robust growth in its security information and event management (SIEM) offerings, with ARR growth estimated to be over 150% year-over-year.
KeyBanc, TD Cowen, and Needham noted that despite potential challenges, such as the lingering effects of a July outage incident, CrowdStrike's Falcon Flex offering and broader platform adoption are expected to contribute to sustained success. The company's management aims to accelerate net new ARR in the second half of fiscal year 2026 and has set a goal to reach $10 billion in ARR by fiscal year 2031.
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